Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,700 of direct materials and used $3.200 of direct labor. The job was not finished by the end of the month, but needed an additional $2,200 of direct materials in October and additional direct labor of $5,700 to finish the job. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost. What is the amount of Job costs added to Work In Process Inventory during October? Multiple Choice Ο $12.800 Ο ( 519,300 Ο Ο 826,400 Ο Ο 830.600 Ο Ο 522,500

Answer 1

al Option B is correct. $ 19,300. Calculation: October Job costs - Direct Materials & Direct Labortoverned = $2,200 + $5,700 +(200% of Direct $2,200 + $5,700 +1.2007 * $5.700) = $2,200 + $5,700 + $ 11,400 = $ 19,300 Process do $ 19,300 Job cost sheets added to work in Inventory during October. (2) Option is correct. $29,800. Calculation : Total costs a september Job costs & October Job costs September Job costs = Direct materials & Direct labort Overhead) =($1,600 + $3,100 +(200% of Direct Labor cont) ! =($ 1,600 + $3,100 +(2007. * $ 3,100)) - $1,600 + $3,100 + $6,200 = $ 10,goo

October Job costs = Direct Materials & Direct labor & Overhead) = $2,100 + $5,600 + (200% of Direct Labor costs) $ 2, 100 + $5,600+ (200h & $5,600) = $2,100 + $5,600 + $11,200 Now, = $ 18,900 Total Costs = $10,900 + $ 18,900 = $ 29,800 The total cost of the job when it is completed in October is $29,800. (3 Option B is correct. 23.04% calculation: Overhead rate = (Overhead applied - Direct Labor costs) x 100 = ($5,300 $ 23,000) x loo - 23.04% So, the overhead application rate was 23.04%.

s Option A is correct. $42,290 Calculation: Overhead Rate = $ 100,260 = Direct labor 40% of Direct Labor cost 40% x Direct labor = $100,260 + 40% Direct labor = $250,650 (Beginning Balance & Direct Materials & Direct Labor & Overhead - Transferred to finished Goods = Ending Balance) ($ 111,400 + Direct Materials & $250,650 + $ 100,260 - $359,700 = $144,90o) Direct Materials + $ 102,610 = $144,900 Direct Materials = $144,900 - $102,610 = $42,290

w ork in Вечілий 4 3 Р Direct Materials Direct labor Applied over head To finished Goods Ending WIP Process Inventory $11, чоо $ 42,290 $ 250,650 & 100, 260 $359, 700 * 1५५,१०० JA factory $ 111,400 overhead $ 100, 260 finished Goods Inventory Beginning FG - Ending fq $130,900 $ 359,700 $157,300 $333,300